Nursing home report hardens positions

By BY CHRIS MCKENNA

Times Herald-Record

August 02, 2012 - 2:00 AM

GOSHEN — Orange County Executive Ed Diana has responded indirectly to the nursing-home investigation he boycotted by warning lawmakers of dire consequences if the county continues operating the Valley View Center for Nursing Care and Rehabilitation.

At a special Legislature meeting Tuesday night, Diana's budget director presented figures suggesting the county would have to lay off 306 employees in other departments or raise taxes by 17.5 percent next year in order to finance Valley View in 2013, based on its projected cost for this year.

But far from convincing opponents of Diana's push to privatize Valley View, the presentation has intensified the war of conflicting figures and rekindled anger over Diana's refusal to testify under oath before a committee investigating the finances and administration of the nursing home.

"This should go into the public record marked 'Scare Tactic No. 2,'" Roxanne Donnery, the panel's chairwoman, said Wednesday.

Investigation ending

The budget warning came as several critical events are converging. The investigation committee, which has nearly finished gathering testimony, is due to deliver a report on its findings by Sept. 6. But in the meantime, Valley View's oversight committee may resume discussion of four bids for Valley View this month and could send a preferred offer to the full Legislature for a vote on that same date — Sept. 6.

Meanwhile, the 2013 county budget is being developed and will be proposed in early October. Budget Director Neil Blair told lawmakers on Tuesday that spending requested by every department except Valley View already exceeds an anticipated tax limit of $112.6 million. Adding Valley View's costs, which have been omitted from the budget plans, would force layoffs in other departments or drive up taxes, he said.

Analysis has 'cooked numbers'

Critics ripped the analysis afterward as flawed propaganda. They noted that it omitted anticipated federal aid and questioned how Blair's tax-levy calculations could work without exorbitant budget requests from the other departments.

"No one's got any documentation in front of us other than their word," said Republican Legislator Mike Anagnostakis.

R.J. Smith, a Republican who serves on the investigation committee and leans toward privatizing the home, said he found the presentation "more confusing than helpful." He questioned why it focused on property taxes without explaining the impact on other revenue sources, such as sales tax.

Independence Party member Michael Amo, who leads Valley View's oversight committee, argued that hiking taxes or laying off workers are only two ways to fund the home. "Those who want to save it should find a way to pay for it," he said.

Amo said he plans to seek consensus on the Health and Mental Health Committee this month on whether to vote on the sale offers. He supports doing so, arguing that bidders could withdraw their offers once their 120-day window closes — around the time of the September meeting.

That poses a timing dilemma. Smith argues that lawmakers should get the investigation committee's report before any sale vote is taken. "To me, that's an absolute," he said.